RINL may get to retain Navratna Status: Official
State-run steel-making company RINL, which faces the prospect losing its 'Navratna Status', is likely to be allowed to retain the coveted status, a company official said here Friday.
Hyderabad: State-run steel-making company RINL, which faces the prospect losing its 'Navratna Status', is likely to be allowed to retain the coveted status, a company official said here Friday.
RINL was awarded the Navratna status on November 16, 2010 with the condition that it would get listed on the stock markets within two years.
"The Ministry of Steel has taken up the issue with DPE on extending the status. We requested the status to be given till we get listed in bourses. Extension is for sure. We will have to see if they continue the status with a time-frame or till the time it gets listed. Officially we will have to hear from them," the official told PTI.
"It is no fault of the RINL. The government itself wanted to defer the IPO. DPE will make decision (on extension of the status) and send to the cabinet for approval,? the official added.
The government had last month indefinitely deferred its proposed initial public offer (IPO) due to differences with the merchant bankers on the price band.
"We have not heard anything from the Department of Disinvestment on the issue of IPO. We have filed the Red Herring Prospectus with Sebi before proceeding for Road shows," the official said.
On the other hand, employee unions of Vizag Steel which are opposing the disinvestment said they will intensify the agitation if the government goes ahead with the move.
The Vizag-based company is the second largest state-owned steel maker in the country after SAIL, with a production capacity of 3 million tons per annum (MTPA).
In case of RINL losing the Navratna status, company's financial autonomy will also get impacted as the coveted tag empowers the Board of a central PSU to take investment decisions up to Rs 1,000 crore in a joint venture project or wholly-owned subsidiary.